MINUTES OF THEANNUAL GENERAL MEETING OF

OTTAWA-CARLETON STANDARDCONDOMINIUM CORPORATION NO. 718

HELD MAY 25, 2017

The 2017Annual General Meeting of Ottawa-Carleton StandardCondominium Corporation No. 718 was held at 120 Grand Carman, Ottawa, Ontario, on May 25, 2017. The following Officials were in attendance:

Liz AdamsPresident

Susan CarterTreasurer

Marian Dupont Secretary

Dick FyleDirector

Pat di Manno Director

Shebel FarahProperty Manager, Apollo Property Management

Sean CornishGeneral Manager, Apollo Property Management

Jim DavidsonCorporation’s lawyer, Davidson Houle Law

Tanya McKenzieRecording Secretary, Apollo Property Management

Twon LeAuditor, Ouseley Hanvey Clipsham Deep LLP

1.Call to Order

The meeting was called to order at 7:00P.M with L. Adams serving as Chair.

2. Proof of Notice of Meeting

The Chair advised that the Notice of Meeting had been duly sent out to the membership on May 9 2017, by Shebel Farah of Apollo Property Management.

Motion: To dispense with the reading of the notice of meeting.

Moved by: G. Donaldson (305)

Seconded by: J. Coombe (607)

Motion Carried.

3.Confirmation of Quorum

A quorum was confirmed as follows:Present41 Proxy 18 TOTAL 59

A minimum of 25% or 35owners present or represented by proxy was required to conduct business. Notice having been served in accordance with the Ontario Condominium Act and, a quorum being present, the Chair declared the meeting of the Owners of Ottawa-CarletonStandard Condominium Corporation No. 718 duly constituted to conduct business.

4. Presentation by James Davidson

J. Davidson briefly introduced himself and outlined the two issues for which he had been asked to speak:

Unresolved issues pertaining to Claridge Condos Stirling Park Incorporated (CCSP Inc.): J. Davidson advised that based on the agreement between CCSP Inc. and OCSCC 718,any costs incurred by OCSCC 718 as a result of the access provided to CCSP Inc. would be covered by CCSP Inc. To date several expenses have been incurred by the corporation but not yet reimbursed by CCSP Inc. J. Davidson’s recommendation is to move forward with the collection process quickly and send a letter immediately asking for payment within two weeks. If payment is not received he recommends the corporation begin the arbitration process as there are limitation periods which must be respected. The Board and Management also need to determine if it is fiscally responsible to incur legal fees to collect these outstanding funds. The amount owed is between $15,000-$30,000; the precise number will be calculated in the coming days.

A.Fulco (1111) inquired why CCSP Inc. has not paid. J. Davidson responded that his interpretation is that making the payment is currently not a priority for CCSP Inc.

D. Ferland (1209) inquired if legal expenses could also be the responsibility of CCSP Inc. if the corporation pursues the matter through arbitration. J. Davidson responded that typically the winning party will have roughly half of their fees covered by the other party. He is hopeful that opening a dialogue between the two parties will bring a solution.

A.Fulco (1111) noted that matters of this nature tend to be drawn out and inquired what the timeline would be. J. Davidson responded that if the arbitration process is undertaken it would be roughly 6-9 months.

Concerns about one resident’s behavior: Due to privacy J. Davidson could not outline the specific nature of the concerns but advised the typical way this is addressed begins with letters from the corporation. This has already been done. The next step would be either court application or mediation, and the process which applies depends on the circumstances. J. Davidson’s view is that a court application would be the best approach. This involves preparation of a notice, affidavit evidence collection and a hearing. We will ask for an order that the resident comply with the Condo Act, declaration, by-laws and rules. This is typically all we can get to begin with. An order to force a sale only applies in extreme cases and comes later in the process. If the court process is engaged the corporation can also request their fees be covered. The Board’s goal is to work with residents to compile the affidavit evidence and residents may be questioned by the opposing party’s lawyer. This is a lengthy process and owners are asked for their patience.

M. Fairfield (408) inquired how owners will be asked to provide affidavits. J. Davidson responded that property management will provide names to Davidson who will then interview owners and prepare the affidavits. He asked any individuals with evidence to come forward.

D. Ferland (1209) inquired if the process could take up to 2-3 years. J. Davidson responded that this is possible but it would hopefully be quicker.

There being no further questions J. Davidson was thanked by the Board and left the meeting.

L. Adams advised that any further questions could be provided to the property manager.

5. Presentation of the 2016-2017 Audited Financial Statements

T. Le from Ouseley Hanvey Clipsham Deep LLP presented the audited financial statements as at

December 31, 2016.

L. Campbell (405) inquired what is included in the “Professional Fees” category. T. Le responded that this includes auditor and legal fees. L. Adams added that the legal fees incurred for the upcoming legal matters outlined by J. Davidson will be itemized so they can be monitored.

L. Trottier (1003) inquired what the “Due from Declarant” are. T. Le responded that these were amounts owing from the builder and include various engineering and legal fees. These are part of the dispute with CCSP Inc.

L. Trottier (1003) inquired on the new RFS why the opening balance is $10,000 higher than the fund ended the fiscal year with. T. Le responded that auditors do not typically comment on small differences. As per the Condo Act the corporation must be completed every three years and based on the engineers expert knowledge they project 30 years into the future. The ending balance as per the RFS is not an exact amount because not all recommended work will be completed. L. Trottier explained his concern is that the funding to the RF was increased but the fund still ended at a lower balance than planned. S. Farah noted that some work on the garage ventilation was done at the end of 2016 but the project will be paid for in the current fiscal year which could account for the variance.

L. Campbell (405) inquired how much revenue was generated from the telecommunications equipment. T. Le responded that this was approximately $6,300 for the year and is included in the miscelleneous category.

Motion: To accept the financial statement as at December 31, 2016 as presented.

Moved by: R. Moore (505)

Seconded by: V. Licandro (704)

Motion Carried.

L. Trottier (1003) inquired why one water invoice was much higher than all previous invoices. S. Carter advised that, when the large water invoice was received, she reviewed previous year’s invoices and inquired if a mistake had been made. The water meter was checked by the City of Ottawa who advised it works. The City was of no further help. An owner suggested the cause may be use by Claridge at the neighbouring building.

G. D’I Virgillio (1004) suggested that the Board ask the City of Ottawa to check the meter reading for Claridge to determine if their reading was much lower for the same period.

W. Coombe (607) noted where the water meter is in the building and explained that water used by neighbouring building would not affect the reading.

Motion: To permit the Board of Directors to appoint and set remuneration for the auditor as per Secton 62B of the Condo Act.

Moved by: G. Donaldson (305)

Seconded by: J. Goon (607)

Motion Carried.

Motion: To appoint Ouseley Hanvey Clipsham Deep as auditor for the current fiscal year.

Moved by: G. Ferland (1206)

Seconded by M. Fairfield (608)

All in Favour. Motion Carried.

6.Approval of Minutes of the 2016 Annual General Meeting

Motion: To dispense with the reading and approve the minutes of the 2016 Annual General Meeting held May 25th, 2016 with amendments.

Moved by: D. Devine (1209)

Seconded by: A. Springer(604)

All in Favour. Motion Carried.

Amendments:

11. Other Business: Comment attributed to D. Devine were not an accurate reflection of comments made during the meeting.

7. President’s Address

L. Adams highlighted the following points in her address to the owners:

-The Board continues to work hard to ensure all owner issues are addressed and to focus on financial security for the corporation.

-She thanked the Board directors for their work throughout the year.

-Some notable accomplishments: thermal imaging as part of the RFS and completion of theKeller engineering RFS update. The next will be a full comprehensive study.

-Caulking of the levers from 101-1201 and 108-1208 to address leaking in 1108.

-Garage cleaning and exterior line painting were done.

-Exterior caulking of windows, doors and levers as per the RFS and after that, the windows will be cleaned.

-A contract will be signed for an LED retrofit of the lighting in the building.

S. Carter made a presentation regarding the decision to sell unit 104:

  • The original sum of $243,000, had it been invested, would now be worth $322,000 versus the current real estate value of $315,000 so essentially neutral. It was appraised by a realtor from the area. The agent recommended the corporation keep the unit.
  • There are costs associated with the unit: property taxes and general maintenance, which form part of the superintendent’s remuneration package. Whether live-in or live-out there would be associated costs.
  • Benefits of keeping unit 104: diversification of investments permitted due to live-in superintendent, could be liquidated if funds were urgently needed, GICs do not have a good rate of return.
  • Con of renting out the unit: as per the CRA a condo corporation that rents a unit for an amount that exceeds the maintenance could lose their non-profit status.
  • The superintendent pays income tax on $10,000 per year but the actual cost is property tax and maintenance at a cost of roughly $3,300.
  • To have an off-site superintendent would likely cost the corporation $7,000 more but there would be no property taxes or condo fees.
  • The current remuneration package for the superintendent falls within the right range as per research.
  • There are intangible benefits to having an on-site superintendent including: proximity in case of an emergency, immediate availability, intimate knowledge of the building, familiar with the residents, attraction to buyers.
  • Conclusion: renting out the unit is not a viable option. From an investment standpoint it does not make sense.

V. Licandro (704) noted that the newest building next door has added a unit for their cleaner.

M. Fairfield (408) thanked Susan for her hard work on this issue and the owners applauded.

L Campbell (405) noted that an investment isn’t realized until it is cashed so if the unit is never sold it is not really an investment. S. Carter responded that it is an investment in abstract terms and it can be liquidated on short notice. L. Campbell inquired how much notice would be given to the superintendent if the unit were sold and encouraged the Board to form a contingency plan. S. Carter advised the Board would look into this.

S. Carter presented the LED lighting retrofit program:

  • Based on a suggestion by an owner, the Board investigated.
  • Large returns on investment can be found but with a high upfront cost.
  • There are currently no funds in the RFS for lighting.
  • Luminex submitted an estimate to retrofit the building with improved technology (changing the ballasts) and financing options.
  • Project entails all lighting in the common areas.
  • There will be some inconvenience as breakers will be turned off in various areas while the work is done. Temporary lighting will be supplied in some areas.
  • Financing: The building will pay a 15% deposit and Luminex will be paid from the Hydro savings on a monthly basis. Estimated payback period is 18 months.
  • Estimated total cost is $41,000 but after rebate it will be $35,000. First year savings is $23,000 and it increases slightly from there.
  • Budget Implications: budget will remain the same for 2018 but beginning in 2019 it will reflect the hydro cost reduction. Savings will help offset contributions to the RF.

G. Donaldson (305) inquired if unit lighting will be effected during the project. S. Carter responded that only common lights will be effected.

L. Trottier (1003) inquired if this includes the exit signs. S. Carter responded noting that the signs will be replaced with the running man signs and comply with current codes. She further noted that Luminex will supply the light bulbs and warranty them for five years.

S. Farah advised that the audit has been done and the bulb replacement will begin in two weeks. Notices will be posted all over the building.

8. Ratification of Corporation Assets

Motion: It is resolved that all acts, contracts, leases, deeds, by-laws, proceedings, elections, appointments and payments of money made by the Board of Directors of Ottawa-Carleton Standard Condominium Corporation No. 718 “The Crystelle” since the last annual general meeting “AGM” held May 25, 2016, be ratified and confirmed.

Moved by: G. Ferland (1206)

Seconded by: E. Coombe (1009)

Motion Carried.

V. Licandro (704) inquired if the draft AGM minutes could be made available to owners before they are approved the following year. S. Farah advised that this could be done as long as the Board agrees.

9.Election of Three Directors to the Board of Directors

S. Farah advised that at the time of the meeting there existed three vacancies on the Board of Directors due to the expiry of the terms of Liz Adams, Marian Dupont and Dick Fyle.Thus farLiz Adams has expressed her willingness to stand for re-election. The floor was thenopened for nominations with S. Farah calling three times.

D. Devine (1209) nominated Laurier Trottier for election to the Board. He graciously declined the nomination.

L. Adams nominated Francis Baker (1010) who accepted the nomination.

An owner thanked the Board for their wonderful job.

It was clarified that the Board will assigned individual positions after the meeting concludes and that owners can be a director at large.

There being no nominations S. Farah closed nominated and announced the two candidates elected by acclamation. The Board may appoint a fifth director to serve until the next AGM. L. Adams suggested owners consider joining one of the many committees.

10.New Business and Questions

Formal business having concluded the Chair opened the floor for new business and questions. She asked that questions be limited to general matters.

G. Ferland (1206) noted that a power outage occurred in July 1st and there was no water on the 12th floor. He inquired if it is possible for the water pump to be connected to the generator. L. Adams responded that the Board was trying to determine what is connected to the generator and continues to investigate as no units in the building have water during power outages.

G.Mladek (808) inquired who oversees contractors in the building. L. Adams advised that Apollo sets the contracts and the superintendent takes the contractor to the job site but given the timelines they cannot be overseen during their entire time on site.G. Mladek noted two recent issues: the line painting is incomplete; a reinstalled sign was put in on an angle. S. Farah responded that he is ultimately responsible for the service provided by contractors. When several contractors are assigned to do work they are not always overseen but the site is inspected before any invoices are paid. G. Mladek stated that if contractors are not held accountable the corporation looses money. S. Farah agreed that aesthetic improvements could be done but that some time needs to be allowed to correct deficiencies. Not all vehicles were moved during line painting and therefore some have not yet been finished. The corporation will hold payment but if the lines cannot be finished after repeated return trips the corporation eventually needs to provide payment. G. Mladek suggested signs be posted outside regarding vehicles being towed. A discussed ensued. L. Adams encouraged owners to report issues with contractor work to the property management so things like this can be addressed.

S. Carter advised that owners should be responsible for their guests.

G. Mladek (808) noted that the fire extinguishers on the 8th-11th floors were not signed off as having been expected. After this was brought to Glen’s attention he signed off on all the lines. He inquired if this was the correct protocol.

L. Trottier (1003) inquired if the status certificate would be updated to reflect the upcoming legal issues. S. Cornish advised that legal actions are noted but that the corporation is currently in the discussion phase. Other than that it’s only issues of substantial cost. L. Adams advised that a change to the certificate was made at the last Board meeting.

L. Coombe (1009) thanked Yves for cleaning up the city sidewalk on Grand Carman.